Name : Gohar Ghaffar

ID : F2019274004

1. Please apply 5 C’s on above case? (1 page)

Ans: 5 C’s Analysis:

 Company :
Tata Motors Limited is an Indian multinational automotive manufacturing company.
Ratan Tata, unveiled the Tata Nano: “the People’s Car”.According to Mr Tata, the
Nano was built to meet all safety standards, designed to meet and exceed emissions
norms, be low in pollution and high in fuel efficiency. Moreover, the car was within
everyone’s reach, the price of its base model being only 1 lakh.The company main
objective was to provide economical cars for the middle class.
 Customers:
Tata Motors were targeting the middle class who were using two wheel transports for
travelling.They wanted to provide a family of four member with an economical
car,which is fuel efficient and easy to drive.They were keeping their budget to 1 lakh
for the middle class to purchase.
 Competitors:
Tata had number of competitors from local and international.Maruti was their local
competitor in size and interior. Some International names such as Suzuki,Ford,Chery
(Dodge), Mercedes and Toyota were also looking to provide economical cars.Their
was a fierce competition for Tata Motors.
 Collaborators:
Tata Collaborated with technical engineers for their manufacturing of Tata Nano car
and they also wanted a land for their manufacturing plant so they got in singur and
sanand in Gujrat from the State Government.They also collaborated with Bosch to
design a two- cylinder aluminum rear engine.They also collaborated with other raw
material providers.
 Context : Pestal Analysis
Political : Tata Motors has been facing extreme political opposition from the
government. A fine example is Tata Motors Singur plant from where it hard to be
moved to Sanand. The plant was supposed to provide jobs to so many local residents
but as the plan is moved to Sanand there is no development in singur.
Economical : Tata is providing cars in low range.Cars which are economically
cheap.Tata has been a very stable company since last few decades. By having extreme
investment in different fields and sustainable running all these fields have created
Tata a better company as compared to their competitors. Tata has been very ethical
towards the society as well as India.
Social : Most ethical companies in India as well as the world. Tata has been widely
investing in social issues as well as provision of development and education to the
rural areas of India.Tata has built its brand image as an ethical brand towards the
Indian industry.

Technological: Tata got a lot of engineers to make their car technically perfect.Tata
has been a highly efficient in terms of investing in technology and maintaining the
technology for a long time.

Environmental:Tata was focusing to produce a car which will have low pollution.
Legal: Government was getting involve when their were strikes for their
manufacturing land in singuar and sanand.Most of the manufacturing facilities of the
Tata Motors says strike as the employees of the specific manufacturing facilities
demanded add better wage.

2. Please apply Porter 5 Forces on above case? (5 to 10

lines with Why)
Ans:
 Bargaining power of Buyers : It is high because their are other companies
which are also providing cheaper cars and looking to target middle class.
 Bargaining power of suppliers: It is low as Tata is looking to get cheaper raw
materials,to make Nano be in the range of 1 lakh for its middle class and many
suppliers are helping in this cause of manufacturing Nano.
 Threat of Competitors: It is high as the market is highly competitive because of
different companies like Suzuki,Maruti,Toyota,Mercedes all looking to provide
economical cars for middle class,
 Threat of new entrants : It is low because to make a new car which is cheap and
providing all the necessary facilities is difficult to imitate for any new
manufacturer as it requires big budget and products are not easily available and
they require budget for large number of labor and manufacturing plant as well.
 Threat of substitutes: it is low because people are not getting any car in the
range of 1 Lakh,although they can still travel on different transports like
Motorbikes,buses,rickshaw,but Tata Nano is only available in the price of 1 Lakh
in which no other car is available.

3.Please apply “ERRC” on the above case? (At least 4

points in each quadrant)

Ans :

Eliminate Raise
 Luxury features  Space and comfort
 Gasoline usuage  Eco Friendliness
 Messy maintenance,no need for  Fuel Economy
motor oil,air filters.  Easy Financing
 Carbon emissions,Pollution

Reduce Create
 Models  Easy Access to purchase
 Colors of Cars  Pride
 Materials and Parts  Status
 Performance  Create electric car with built in
charging system.
Q5There are 6 pathways to reconstruct market
boundaries, apply 3 of them on this case? (1 page)
Ans :

Strategic Group:
Tata must look for new innovations,like making electric cars and target audience with
these new generation cars.Which will save people’s money on fuel
Tata must think whether they still need to utilize the same procedure to target
the middle class market that they as of now did or do they need to move in other
unexplored ranges where they can compete in a market that has
more alternatives for expansion. In this case the center has been to cut costs but this
has dis-heartened a major audience of the market. The technique must be redesign
going forward. This might incorporate making speculations to alter the
brand picture of world’s cheapest car to coolest little car.
Across Time:
Tata came at the right time and targetted the middle class because families were
struggling to travel.Now with time more people can buy Small cars in low cost
Tata thought of innovating such a product from year 2002 when he looked at hustle
bustle, a safe, affordable all-weather form of transport for such a family. The idea of
building a four-wheel vehicle from scooter parts came to his mind. India had
emerging and growing middle class and due panning economy they were not having
many options in terms of buying vehicles so what Tata gave them a hope and
opportunity to buy a car with technology innovation a compact two wheel car that
satisfies their need, get on road with their own vehicle. The creation of Nano was new
invention and it really paved off.
Buyer Group:
Tata should be in the shoes of buyer and look for more cheaper features which could
benefit the lower class as well.
In this complete scenario, Tata needs to redefine the segment of buyers it wants to
target moving forward. The product was intended for one market and is being sold to
another due to certain unpredicted variables that influence the demand patterns across
the buyers within the automobile industry. Targeting the middle class would help Tata
as they would be able to provide economic solutions to the middle class that is
generally socio economic in India. They could produce cars at a cheaper rate with
functionalities of the mid-range cars. Manufacturing within India would cause a great
deal of cost effectiveness as well as compared to competitors.